OREGON HOUSE REPUBLICANS
FOR IMMEDIATE RELEASE
CONTACT: Nick Smith
March 15, 2011
HOUSE REPUBLICANS AIM TO CREATE JOBS BY
REFORMING MEASURE 67
SALEM—House Republicans today presented two bills to the House Revenue Committee to replace provisions of Measure 67 with a new corporate minimum tax system. Republicans say replacing the tax will promote job-creation in the state.
Rep. Tim Freeman (R-Roseburg) testified in support of HB 3447 to replace the gross receipts tax in Measure 67 with two flat corporate minimum tax rates. He said the current system harms job creation and is unfair to businesses that struggle to earn a profit.
“It’s unfair to hand a large tax bill to businesses that have significant gross sales but no profit,” Rep. Freeman said. “With double digit unemployment, Oregon can’t afford a corporate tax system that cost jobs and the revenues that provide for vital government services.”
HB 3447 maintains existing law by requiring businesses with less than $500,000 to pay a corporate minimum of $150. However, businesses with sales of more than $500,000 would have a corporate minimum tax of $500. The bill maintains the current minimum tax of $500 for businesses earning between $500,000 and $1 million.
“With this fix, I believe we can have a corporate minimum tax that’s fair, business-friendly, and one that doesn’t punish businesses that operate on the margins,” Rep. Freeman said.
Rep. Katie Eyre Brewer (R-Hillsboro) testified in support of HB 3217 to replace the gross receipts tax with a uniform corporate minimum tax of $150. She said the bill simplifies Oregon’s corporate minimum tax and will encourage more Oregon businesses to invest in their operations and hire more workers.
“Measure 67 disproportionately hurts smaller Oregon-based businesses and hurts our high-volume, low-gross-profit industries,” Rep. Eyre Brewer said. “HB 3217 provides a simple and fair corporate minimum tax. It will improve our business environment, create jobs and accelerate our economic recovery.”
Reforming the job-killing gross-receipts tax in Measure 67 is part of the House Republicans’ 2011 Jobs and Reform Agenda.